Cryptocoin Mining?

[TakeNoPrisoners]

Nope.

Got a crash like normal. I just dont think this model will overclock. Its a Powercolor 5850.

 

[ViviTheMage]

figured it out ... here's my little code, haha.

1PBU86oBMtHVZapgjJsBs65NuHMbcECfp6

 

[Chiropteran]

How can MtGox just reverse transactions? I thought once a transaction was made between wallets that it was the miners themselves that 'validated' to prevent that sort of thing. I guess this is assuming buying/selling coins on there is done between BTC wallets, which could be incorrect.

Transactions on mtgox are BTC to USD or vice versa. During a normal mtgox transaction, neither cash nor BTC actually leave mtgox. It's just 1 user selling BTC for USD to another user, the BTC are not actually sent anywhere because they are in mtgox account before and after the transaction. BTC or USD are only actually sent away if a user performs a withdraw, which is limited to $1000/day for most.

 

[ViviTheMage]

Transactions on mtgox are BTC to USD or vice versa. During a normal mtgox transaction, neither cash nor BTC actually leave mtgox. It's just 1 user selling BTC for USD to another user, the BTC are not actually sent anywhere because they are in mtgox account before and after the transaction. BTC or USD are only actually sent away if a user performs a withdraw, which is limited to $1000/day for most.

which is good IMO ...

How are these transactions logged? I read somewhere that they are logged somehow.

 

[YoungGun21]

Supposedly some early adopters are now planning to sell off once MtGox comes back online, so I'm hoping the price doesn't take too much of a hit. It was back up to around 18 for a while before this, would hate to see it drop too much just because it got hacked.

 

[ViviTheMage]

Supposedly some early adopters are now planning to sell off once MtGox comes back online, so I'm hoping the price doesn't take too much of a hit. It was back up to around 18 for a while before this, would hate to see it drop too much just because it got hacked.

As would I, but I plan to hold out .

I am still contemplating dropping some cash on 3 6990's

recoop would take a while though.

 

[darkewaffle]

Transactions on mtgox are BTC to USD or vice versa. During a normal mtgox transaction, neither cash nor BTC actually leave mtgox. It's just 1 user selling BTC for USD to another user, the BTC are not actually sent anywhere because they are in mtgox account before and after the transaction. BTC or USD are only actually sent away if a user performs a withdraw, which is limited to $1000/day for most.

How do the coins get into MtGox then? When you create an account do they give you a 'server side' wallet number to deposit to which they internally bind to your user account? I'm missing some sort of connection here.

 

[YoungGun21]

How do the coins get into MtGox then? When you create an account do they give you a 'server side' wallet number to deposit to which they internally bind to your user account? I'm missing some sort of connection here.

You send coins to MtGox's wallet. Once they are there, MtGox recognizes that you have X amount of coins in their wallet, which is your current account balance. If you sell to someone else, the coins stay there, but the account balances change. It is just a shift of ownership, but MtGox still has the same amount of coins in its wallet.

This is at least how I was told.

 

[Ghiddy]

How do the coins get into MtGox then? When you create an account do they give you a 'server side' wallet number to deposit to which they internally bind to your user account? I'm missing some sort of connection here.

I don't think it matters exactly how the coins get in. But it's one of two ways:

1. You deposit to Gox, and Gox stores it in one huge "global" wallet. They have a database that keeps track of each individual's bitcoin balance. When you withdraw or deposit, that adds/removes from the global wallet, at the same time updating your individual balance amount in their database.

2. They create a separate wallet for each user. This is far less likely as it's harder to maintain. Transferring funds would entail transferring btc from multiple wallets until the transfer amount is met. They'd also have to generate tons of different wallet addresses, and this would make it potentially possible to identify individual traders based on those wallet addresses.

So I would say it's most likely #1.

 

[OILFIELDTRASH]

Can someone tell me where the money is coming from to back the bitcoin? I haven't heard of one person investing actual dollars in bitcoins.

 

[ViviTheMage]

I don't think it matters exactly how the coins get in. But it's one of two ways:

1. You deposit to Gox, and Gox stores it in one huge "global" wallet. They have a database that keeps track of each individual's bitcoin balance. When you withdraw or deposit, that adds/removes from the global wallet, at the same time updating your individual balance amount in their database.

2. They create a separate wallet for each user. This is far less likely as it's harder to maintain. Transferring funds would entail transferring btc from multiple wallets until the transfer amount is met. They'd also have to generate tons of different wallet addresses, and this would make it potentially possible to identify individual traders based on those wallet addresses.

So I would say it's most likely #1.

My guess is also 1, once they confirm the transaction after xx confirmations, they proceed with putting cash in your account.

Can someone tell me where the money is coming from to back the bitcoin? I haven't heard of one person investing actual dollars in bitcoins.

'banks' like mt gox I guess are backing it? People putting money into new video cards to mine, haha.

 

[notty22]

Ars Technica has had some of the best articles explaining bitcoin, I posted them earlier in this thread. Along with news from Symantec that hackers were zeroing in. Nobody wanted to hear the downsides of bitcoin.
Bitcoin prices plummet on hacked exchange
Bitcoin: inside the encrypted, peer-to-peer digital currency

 

[SlowSpyder]

So all it took was money and F@H was left in the dust?

I doubt F@H is effected much.

AMD cards don't really fold and Nvidia cards make poor miners. So Folders are likely still folding, us with AMD cards are mining now, that's all.

 

[Chiropteran]

Supposedly some early adopters are now planning to sell off once MtGox comes back online, so I'm hoping the price doesn't take too much of a hit. It was back up to around 18 for a while before this, would hate to see it drop too much just because it got hacked.

I don't think there will be a problem. Yesterday with the hacker-enabled sell off of 300k coins the price hit 0.01 briefly but instantly bounced back up to $10 because so many people either had outstanding buy orders for coins once they reached such a low value and/or people reacted to the low prices and put in buy orders manually to take advantage of the cheap coins.

If a couple heavy investors decide to cash out the same thing will happen. Worst case the value might drop a few dollars and settle around $12 or so, I am predicting it now that it will not stay lower than $10 for more than a few minutes at a time, worst case scenario.

Besides all that, if you were an early adopter getting ready to cash out, the worst thing in the world to do would be to tell everyone your plans before you did it. I strongly believe that any such rumors floating around were started by people who just want to encourage a brief sell-off so they can buy some cheap BTC when the value falls.

Can someone tell me where the money is coming from to back the bitcoin? I haven't heard of one person investing actual dollars in bitcoins.

Regular people just like us. Or perhaps, regular people like us without the want or desire to setup mining hardware to mine. Every time you sell or otherwise cash-out a bitcoin, someone else is buying it. There is no central authority giving people money for coins, the exchanges like mtgox just set things up so you can sell your coins to other members for cash.

 

[Aikouka]

When you transfer BTC to Mt. Gox, they give you the usual public wallet address similar to the one that you gave your mining pool. You have 24 hours to use the address after saying, "I want to submit n BTC", and I assume they tie that specific public key to your account for that 24 hours (or until the submission is done). So if username requested to add 1 BTC and was given the address abcd, and they receive 1 BTC through the public key abcd, they would attribute that to username's account.

Technically, I could request to add funds and someone else could fulfill it for me if they used the right public key.

EDIT:

Oh and the entire Mt. Gox database is available online. I downloaded it and checked it out... the passwords are still hashed in the released version which contains username, e-mail address and password hash (MD5 + salt).

 

[NoStateofMind]

Oh and the entire Mt. Gox database is available online. I downloaded it and checked it out... the passwords are still hashed in the released version which contains username, e-mail address and password hash (MD5 + salt).

Which is why TradeHill is getting my serious consideration.

Damn, trading at 7.16USD. Not looking good for profits anymore

 

[OILFIELDTRASH]

I don't think there will be a problem. Yesterday with the hacker-enabled sell off of 300k coins the price hit 0.01 briefly but instantly bounced back up to $10 because so many people either had outstanding buy orders for coins once they reached such a low value and/or people reacted to the low prices and put in buy orders manually to take advantage of the cheap coins.

If a couple heavy investors decide to cash out the same thing will happen. Worst case the value might drop a few dollars and settle around $12 or so, I am predicting it now that it will not stay lower than $10 for more than a few minutes at a time, worst case scenario.

Besides all that, if you were an early adopter getting ready to cash out, the worst thing in the world to do would be to tell everyone your plans before you did it. I strongly believe that any such rumors floating around were started by people who just want to encourage a brief sell-off so they can buy some cheap BTC when the value falls.






Regular people just like us. Or perhaps, regular people like us without the want or desire to setup mining hardware to mine. Every time you sell or otherwise cash-out a bitcoin, someone else is buying it. There is no central authority giving people money for coins, the exchanges like mtgox just set things up so you can sell your coins to other members for cash.

I haven't read of one person actually buying bitcoins though. Every computer nerd and their cousin is mining for bitcoins and I would guess maybe a few investors or whoever actually buying them.

 

[ViviTheMage]

Which is why TradeHill is getting my serious consideration.

Damn, trading at 7.16USD. Not looking good for profits anymore

I want it back to $34~ haha

 

[YoungGun21]

I haven't read of one person actually buying bitcoins though. Every computer nerd and their cousin is mining for bitcoins and I would guess maybe a few investors or whoever actually buying them.

What is there to read about people buying BTC? That doesn't make a good story. However, many people are doing it. It is actually more profitable than mining, except it takes on more risk. We might start buying and trading in addition to mining once we fully cover our hardware costs.

Also, for everyone considering moving to tradehill, have they even proven to be more secure than mtgox? I don't see what changing from one exchange from the other is going to do for you, mtgox is coming back 20x more secure than they used to be. I doubt they will get fully hacked like this ever again, just get the typical DDoS every now and then, which they handle pretty well.

 

[ViviTheMage]

What is there to read about people buying BTC? That doesn't make a good story. However, many people are doing it. It is actually more profitable than mining, except it takes on more risk. We might start buying and trading in addition to mining once we fully cover our hardware costs.

Also, for everyone considering moving to tradehill, have they even proven to be more secure than mtgox? I don't see what changing from one exchange from the other is going to do for you, mtgox is coming back 20x more secure than they used to be. I doubt they will get fully hacked like this ever again, just get the typical DDoS every now and then, which they handle pretty well.

Curious, how much have you sunk into it, for hardware that is?

 

[Zargon]

I haven't read of one person actually buying bitcoins though. Every computer nerd and their cousin is mining for bitcoins and I would guess maybe a few investors or whoever actually buying them.

could be, Im sure some people are buying though

 

[OILFIELDTRASH]

could be, Im sure some people are buying though

My guess is that the founders of bitcoin have an investor with probably 50k buying bitcoins. Once they get more people mining and actually buying bitcoins they are going to unload all of their bitcoins which would basically be them cashing in the chips and taking it with em.

 

[Desin]

People are putting in money the same way they are taking money out of mtgox. I decided to dump 1k into it last week and opted to buy hardware to hedge my risk on the 1k by having physical hardware to sell if shit went belly up. There is a TON of real money tied up in mtgox right now. Not near what there is is BTC out there but more than most people will make in a lifetime for sure.

I'm hoping the owner gets his shit together. He has probably more interest in BTC not failing than just about anyone since most of his money is in BTC form right now and he was making a killing on fees. Most of the trading community has their BTC tied up there, hence none of the other exchanges showing a sharp increase in volume.

I really wish BTC would become the back alley internet currency(MMO $$,Poker, etc). I don't think it has a chance going mainstream. The early guys with millions of dollars worth mean the price is too susceptible to wild supply/demand swings.


No profanity on the technical subforums please.

Idontcare
Super Mod

 

[Dark Shroud]

Which is why TradeHill is getting my serious consideration.

Damn, trading at 7.16USD. Not looking good for profits anymore

The single reason I'm not considering TradeHill is because of how they gained my email address to mail be twice.

 

[Dark Shroud]

I haven't read of one person actually buying bitcoins though. Every computer nerd and their cousin is mining for bitcoins and I would guess maybe a few investors or whoever actually buying them.

Why would we talk about it? Have you actually read through this thread we talk about buying lower and then selling higher. I've done it a few times with BTC.